By Jeff Fread on Monday, June 6th, 2016 in FinTech.
The WSJ is reporting that Vouch Financial is shutting down as its funders have decided to move on. As of June 6th, however, it looks like they are still accepting applications. Vouch faced the same challenges as its competitors with pressure on the funding front combined with banks offering more online lending products to go with a greater risk appetite.
Vouch has/had an interesting business proposition:
Unfortunately for them, it didn’t seem to catch on with consumers. The WSJ noted that they had only funded about $1 million in loans through last August compared to billions funded by Prosper and LendingClub. Some of the issues they likely faced:
Seeing what worked and didn’t work in their marketing and risk management would be an interesting business school case study some day.